Correlation Between Pha Lai and Post
Can any of the company-specific risk be diversified away by investing in both Pha Lai and Post at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pha Lai and Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pha Lai Thermal and Post and Telecommunications, you can compare the effects of market volatilities on Pha Lai and Post and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Pha Lai with a short position of Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pha Lai and Post.
Diversification Opportunities for Pha Lai and Post
Average diversification
The 3 months correlation between Pha and Post is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Pha Lai Thermal and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni and Pha Lai is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Pha Lai Thermal are associated (or correlated) with Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Pha Lai i.e., Pha Lai and Post go up and down completely randomly.
Pair Corralation between Pha Lai and Post
Assuming the 90 days trading horizon Pha Lai Thermal is expected to generate 0.6 times more return on investment than Post. However, Pha Lai Thermal is 1.68 times less risky than Post. It trades about 0.01 of its potential returns per unit of risk. Post and Telecommunications is currently generating about 0.01 per unit of risk. If you would invest 1,102,905 in Pha Lai Thermal on November 5, 2024 and sell it today you would earn a total of 27,095 from holding Pha Lai Thermal or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pha Lai Thermal vs. Post and Telecommunications
Performance |
| Timeline |
| Pha Lai Thermal |
| Post and Telecommuni |
Pha Lai and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pha Lai and Post
The main advantage of trading using opposite Pha Lai and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pha Lai position performs unexpectedly, Post can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Post will offset losses from the drop in Post's long position.| Pha Lai vs. Vnsteel Vicasa JSC | Pha Lai vs. Asia Pacific Investment | Pha Lai vs. Everland Investment JSC | Pha Lai vs. Construction And Investment |
| Post vs. South Basic Chemicals | Post vs. Nam Kim Steel | Post vs. Tay Ninh Rubber | Post vs. Tien Phong Plastic |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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